This blog will introduce the list of halal stocks in the Dow Jones index.
What Is the Dow Jones or the Dow Jones Industrial Average (DJIA)?
The Dow Jones Industrial Average (DJIA), also known simply as the Dow or the Dow Jones, is a stock market index comprising 30 large, blue-chip companies listed on the New York Stock Exchange (NYSE) and Nasdaq. The Dow Jones was first published in 1896. The Dow’s 30 prominent companies are from various major U.S. sectors, except utilities and transportation. A committee selects companies in the Dow Jones, and their composition can vary over time based on economic and financial trends. Some companies may be added or removed from the index displaying the current economic state. The members of Dow Jones must be from the companies of the S&P 500. S&P Global, which operates both the Dow Jones and the S&P 500, said that a company is included in the Dow 30 if only it has a good reputation, steady growth, and strong interest from investors.
What Does the Dow Jones Measure?
The Dow Jones index is price-weighted, while other stock indices are market-cap-weighted. The weight of each stock is determined by its share price. For instance, A $50 stock will be weighted more than a $10 stock. If a stock splits, its corresponding weighting in the Dow Jones will be reduced since its price will be about half of what it was before the split.
Despite having other better indicators for the overall stock market performance, Dow Jones appears first over other indexes, such as the Nasdaq and the S&P 500, on newscasts and financial news websites.
The Dow’s 30 companies – are they Halal?
Many Muslim investors do not know whether or not the stocks listed on the Dow Jones are Halal. The answer is yes; 14 listed companies in the Dow are categorized as Halal, according to Musaffa. Almost half of the listed stocks in Dow Jones comply with Shariah criteria.
Shariah-compliant status of the Dow’s 30 companies
The table below alphabetically shows the 30 companies currently listed in the Dow Jones Industrial Average as of 2022. The shariah-compliant status of listed companies in the Dow can be seen below:
|Company||Ticker||Market cap||Shariah-Compliance status||Halal Ranking|
|1||American Express||NYSE:AXP||$108.6 billion||Not Halal||0|
|4||Boeing||NYSE:BA||$80.8 billion||Not Halal||0|
|5||Caterpillar||NYSE:CAT||$104.6 billion||Not Halal||0|
|7||Cisco Systems||NASDAQ:CSCO||$182.6 billion||Halal||2|
|9||Dow, Inc.||NYSE:DOW||$40.3 billion||Not Halal||0|
|10||Goldman Sachs||NYSE:GS||$97.5 billion||Not Halal||0|
|11||Home Depot||NYSE:HD||$276.1 billion||Halal||4|
|12||Honeywell International||NASDAQ:HON||$122.3 billion||Not Halal||0|
|14||International Business Machines||NYSE:IBM||$123.8 billion||Not Halal||0|
|15||Johnson & Johnson||NYSE:JNJ||$456.4 billion||Halal||4|
|16||JPMorgan Chase||NYSE:JPM||$339.5 billion||Not Halal||0|
|22||Procter & Gamble||NYSE:PG||$328.1 billion||Halal||4|
|24||Travelers||NYSE:TRV||$38.9 billion||Not Halal||0|
|25||UnitedHealth Group||NYSE:UNH||$450 billion||Not Halal||0|
|26||Verizon||NYSE:VZ||$212.6 billion||Not Halal||0|
|28||Walgreens Boots Alliance||NASDAQ:WBA||$34.7 billion||Not Halal||0|
|30||Walt Disney||NYSE:DIS||$170.6 billion||Doubtful|
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